LANTHEUS HOLDINGS INC (NASDAQ:LNTH), a growth stock which is not overvalued.

Last update: Apr 7, 2025

LANTHEUS HOLDINGS INC (NASDAQ:LNTH) has caught the eye of our stock screener as an affordable growth stock. LNTH is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

What does the Growth looks like for LNTH

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. LNTH has earned a 7 for growth:

LNTH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.83%, which is quite good.
The Earnings Per Share has been growing by 42.10% on average over the past years. This is a very strong growth
Looking at the last year, LNTH shows a quite strong growth in Revenue. The Revenue has grown by 18.32% in the last year.
Measured over the past years, LNTH shows a very strong growth in Revenue. The Revenue has been growing by 34.59% on average per year.
The Earnings Per Share is expected to grow by 9.23% on average over the next years. This is quite good.
Based on estimates for the next years, LNTH will show a quite strong growth in Revenue. The Revenue will grow by 8.86% on average per year.

A Closer Look at Valuation for LNTH

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of LNTH, the assigned 7 reflects its valuation:

LNTH's Price/Earnings ratio is rather cheap when compared to the industry. LNTH is cheaper than 91.10% of the companies in the same industry.
LNTH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.10.
Based on the Price/Forward Earnings ratio, LNTH is valued cheaper than 90.05% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.33, LNTH is valued a bit cheaper.
Based on the Enterprise Value to EBITDA ratio, LNTH is valued cheaper than 86.91% of the companies in the same industry.
LNTH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LNTH is cheaper than 91.10% of the companies in the same industry.
LNTH has an outstanding profitability rating, which may justify a higher PE ratio.

Understanding LNTH's Health Score

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. LNTH scores a 9 out of 10:

An Altman-Z score of 6.68 indicates that LNTH is not in any danger for bankruptcy at the moment.
The Altman-Z score of LNTH (6.68) is better than 87.96% of its industry peers.
The Debt to FCF ratio of LNTH is 1.22, which is an excellent value as it means it would take LNTH, only 1.22 years of fcf income to pay off all of its debts.
LNTH has a better Debt to FCF ratio (1.22) than 91.62% of its industry peers.
Although LNTH does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
A Current Ratio of 5.52 indicates that LNTH has no problem at all paying its short term obligations.
With an excellent Current ratio value of 5.52, LNTH belongs to the best of the industry, outperforming 80.63% of the companies in the same industry.
A Quick Ratio of 5.23 indicates that LNTH has no problem at all paying its short term obligations.
LNTH has a better Quick ratio (5.23) than 82.20% of its industry peers.

How do we evaluate the Profitability for LNTH?

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For LNTH, the assigned 9 is a significant indicator of profitability:

With an excellent Return On Assets value of 15.78%, LNTH belongs to the best of the industry, outperforming 95.81% of the companies in the same industry.
Looking at the Return On Equity, with a value of 28.72%, LNTH belongs to the top of the industry, outperforming 97.91% of the companies in the same industry.
LNTH has a better Return On Invested Capital (19.59%) than 98.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LNTH is significantly above the industry average of 7.68%.
The last Return On Invested Capital (19.59%) for LNTH is above the 3 year average (16.25%), which is a sign of increasing profitability.
LNTH has a Profit Margin of 20.37%. This is amongst the best in the industry. LNTH outperforms 94.24% of its industry peers.
LNTH's Profit Margin has improved in the last couple of years.
LNTH has a Operating Margin of 29.24%. This is amongst the best in the industry. LNTH outperforms 97.91% of its industry peers.
In the last couple of years the Operating Margin of LNTH has grown nicely.
LNTH has a better Gross Margin (64.43%) than 65.97% of its industry peers.
In the last couple of years the Gross Margin of LNTH has grown nicely.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of LNTH for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.